The world’s top 9 most stable real estate markets
Dubai features in the ranking
A new study conducted by Deluxe Holiday Homes has unveiled the top nine cities worldwide with the most stable real estate markets. The analysis assessed rent prices for one-bedroom apartments in city centres and surrounding areas, alongside apartment purchase prices per square metre.
The cities were ranked based on minimal changes in rent and property prices over three years, with the most consistent price movements being prioritised.
The results show that the cities with the most stable real estate markets displayed minimal fluctuations, highlighting their resilience against global economic shifts. By focusing on rental and property prices, the study provides valuable insights for investors looking for areas where the market has maintained relative steadiness over the past few years.
Buenos Aires
Buenos Aires, Argentina, takes the top spot, with an overall minimal change of -0.22% in property and rent prices between 2021 and 2023. While rent prices dropped by -13.54%, property prices surged by 13.10%. This sharp contrast between the rental and purchase markets points to a strong demand for property ownership despite the challenges in the rental sector.
San Francisco
In second place is San Francisco, United States, where the overall market showed a modest change of 0.27%. Rent prices increased by 8.22%, while property prices decreased by -7.69%. The slight increase suggests the market is adjusting to post-pandemic trends, moving towards a more balanced situation than many expected in this high-demand area.
Dubai
Dubai, United Arab Emirates, ranks third with an impressive overall price change of just 0.40%. Rent prices increased by 0.80%, while property prices remained unchanged over the two years. This minimal fluctuation highlights Dubai’s consistent market stability, an attractive feature for investors and residents.
Paris
Paris, France, follows in fourth place, with an overall change of 0.43%. The city’s real estate market has seen fluctuations, but the overall stability suggests it remains a desirable location for both renters and buyers. The shift from renting to buying indicates changing consumer behaviour, influenced by affordability issues in the rental market.
Seattle
Seattle, United States, ranks fifth, but its market is more volatile overall, with a decline of -0.81%. While rents have increased by 9.77%, property prices have fallen by -11.40%. This significant drop in property prices marks Seattle as an area where market adjustments are still in process, and investors may want to consider potential volatility.
Porto
Porto, Portugal, comes in sixth place with a slight overall increase of 1.07%, showing steady growth in the real estate market. Property prices rose 8.46%, while rents fell by -6.32%. This suggests a preference for property ownership in Porto, a growing European hub that has become increasingly attractive for investors and homebuyers.
Sao Paulo
Seventh on the list is Sao Paulo, Brazil, where the market saw an average change of 1.40%. The city’s rent grew by 14.03%, the highest growth on the list, while property prices fell by -11.22%. This stark contrast suggests that rental demand dominates in Sao Paulo’s real estate market, although the property sector is experiencing some declines.
Tel Aviv
Tel Aviv, Israel, ranks eighth with an overall change of -1.74%, reflecting a mixed market. While rents increased by 6.58%, property prices dropped by -10.07%. These figures point to a market in flux, adjusting to shifting economic conditions, which could offer opportunities for investors to capitalise on price discrepancies.
Bangkok
Finally, Bangkok, Thailand, rounds out the list with an overall decline of -2.03%. Rent prices fell by 6.93%, while property prices slightly increased by 2.88%. This suggests a subdued market with limited demand in rental and purchase sectors, reflecting cautious optimism in the Thai real estate market.
A spokesperson from Deluxe Holiday Homes commented on the findings: “The most stable real estate markets tend to show minimal fluctuations in both rents and property prices. These markets demonstrate resilience in the face of global economic shifts.
“On the other hand, areas where rent prices rise significantly while property prices fall reflect evolving trends, indicating that rental demand plays a larger role. This underlines the importance of tracking rent and purchase price stability when evaluating long-term investment opportunities.”
Image: Dubai rent prices increased by 0.80%, while property prices remained unchanged over the two years. Credit: Arnold Pinto
